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    Handy in all times, moat of strong brand: 5 stocks, which are leader in their sectors that can offer up to 31% returns

    Synopsis

    If one looks at the history of the markets, there are companies which always trade a premium. Long time and still a number of such companies used to be MNC companies which used to get premium. But over the last 15 years, some of the Indian companies have been getting a premium on the street. The premium because they are the leader in their category in terms of market share and they have strong brands. It has been seen that when markets are high and these sets of companies where valuations are not cheap, even then analysts have not initiated a sell call, rather they have moved to hold. A strong brand helps a company's weather all storms of an economic slowdown or inflationary pressure and over a period of time it has been witnessed that companies with strong brands are able to pass on increased costs and maintain their margins to a large extent. Also they are to diversify into other products on the back of one strong brand.

    Having a strong brand is the backbone of any consumer facing business. Whether it is inflationary headwinds or overall slow down, companies with strong brands in consumer discretionary space have shown that finally it was the brand which helped them in tough times. Even on the street, the valuation premium which the companies have been getting has been increasing over a period of time. Also if one looks at the trend, even on the financial front,
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    The Economic Times